In the first quarter of 2021

Labour Cost Index increased by 7.9% from the corresponding quarter

The Labour Cost Index-LCI (working days adjusted) increased by 7.9% in the 1^st quarter of 2021, compared with the same period of 2020.

The two main labour cost items are “wage costs” (per hour actually worked) and “other costs” (non-wage costs but per hour actually worked).

The first includes:

• Base wage
• Regular bonuses and allowances
• Irregular bonuses and allowances (holiday bonus, Christmas bonus, end-of-year bonuses/distribution of profits, other irregular bonuses and allowances)
• Payment of overtime
• Payment in kind

The other costs includes:

• Severance payment
• Employers’ legal costs (social security contributions, insurance against accidents and occupational disease)
• Collectively agreed, contractual and voluntary costs (supplementary pension/invalidity benefit, health insurance, life/personal accident insurance, and social benefits paid directly to employees in case of absence on account of sickness)

 “Wage costs” increased by 8.1% and the “other costs” by 7.1% from the year-ago quarter, respectively.

At the country level, the index increased by 7.0% year-on year. “Wage costs” went up by 7.6% and the “other costs” by 4.3%.

In the country and in the Region, the main reason for the LCI growth was the reduction of  number of hours actually worked, explained by the restrictive measures implemented by the Governments to control the spreading of the COVID-19 pandemic.

 

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